Housing affordability crisis intensifies in Saltillo and Spain

In Saltillo, Mexico, housing costs have outpaced wage growth, making homeownership increasingly unattainable for the average worker. Data indicates that by 2025, an individual earning the minimum wage would need approximately 14.7 years of total income, without any other expenses, to afford the cheapest available home priced at $1.5 million pesos. Even those earning the average local salary of $12,000 pesos face a 10.4-year gap to purchase basic housing.

Several factors contribute to this crisis in Saltillo, including the impact of nearshoring, which has driven up demand and prices, and a shortage of affordable housing stock. While official programs like INFONAVIT suggest lower price points, the actual market lacks sufficient inventory of low-cost homes. Consequently, lower-income populations are being pushed toward the outskirts of the city.

Similarly, Spain is facing a significant housing crisis characterized by rising prices and shrinking supply. Reports indicate that since the current administration took office, purchase prices per square meter have increased by 85 percent, while rental prices have risen by 40 percent. This trend has coincided with a decline in real estate offerings for both sales and rentals, contributing to increased eviction rates and poor living conditions for many residents.